Question: Libby, will mortgage rates drop because of the COVID-19 pandemic? Answered by Libby Guthrie
Hi, I’m Libby Guthrie with Keller Williams Realty in Northern California, and I’m going to talk real quickly today about mortgage interest rates and what causes them to go up and down.
A lot of times I’ll have clients call me because they’ve heard that the feds have lowered the interest rate and they assume that that’s going to affect the mortgage interest rates.
It does in some ways, but in other ways, it doesn’t. A lot of things affect mortgage interest rates.
One thing that can affect them is what the unemployment situation is at this time. Inflation, honestly, with what we’re going through now with the COVID virus. Is there going to be a vaccine for it that could affect a positive thing, possibly for the mortgage interest rates?
Also, any media things that come out that could affect the mortgage interest rates.
Political leaders that make statements that could possibly affect mortgage interest rates.
So you want to remember that the fed rates and mortgage rates are two different kinds of rates.
One thing you want to look at is the bond market. If the bond market is up, usually the mortgage interest rates are down.
My prediction, if I had a crystal ball, is that I believe that the mortgage interest rates are going to remain low for quite some time. And that’s good news for buyers and for sellers that are thinking of buying after they sell.
So stay tuned and we’ll see what happens with the mortgage rates. But that’s what I, my prediction is at this time.
If you have questions, please leave them in the comment section below or call Libby at (925) 628-2436.